Trade setup for today: Top 15 things to know before the opening bell

The market on September 14 witnessed a smart recovery from the day’s low as the session progressed, though it closed lower and snapped a four-day winning streak due to weakness in global counterparts and technology stocks.

The BSE Sensex recouped more than 800 point losses from the day’s low, to close 224 points lower at 60,347, while the Nifty50 fell 66 points to 18,004 and formed a strong bullish candle on the daily charts as the closing was higher than opening levels.

“A long bull candle was formed on the daily chart with a minor upper shadow. Technically, this pattern indicates the emergence of sharp buying interest from the lower support,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.

Shetti further said after moving above the important resistance of down sloping trend line at 17,900 levels recently, the Nifty witnessed sharp buying from near that trend line support as per the concept of change in polarity. This is a positive indication.

He believes the short-term uptrend status of the Nifty is still positive. “A sustainable move above the hurdle of 18,100 levels could pull Nifty towards the next overhead resistance of 18,350 in the short term. Any weakness from here could find support around 17,920 levels.”

The broader markets also trimmed losses, with the Nifty Midcap 100 and Smallcap 100 indices declining 0.33 percent and 0.07 percent, respectively.

We have collated 15 data points to help you spot profitable trades:

Note: The open interest (OI) and volume data of stocks in this article are the aggregates of three-month data, and not just of the current month.

Key support and resistance levels on the Nifty

As per the pivot charts, the key support level for the Nifty is placed at 17,819, followed by 17,635. If the index moves up, the key resistance levels to watch out for are 18,140 and 18,276.

Nifty Bank

The Nifty Bank outperformed broader markets, rising 532 points to end at a record closing high of 41,405 and formed a large bullish candle on the daily charts on Wednesday. The important pivot level, which will act as crucial support for the index, is placed at 40,587, followed by 39,769. On the upside, key resistance levels are placed at 41,925 and 42,445 levels.

CALL OPTION DATA

Maximum Call open interest of 30.34 lakh contracts was seen at 18,000 strike, followed by 18,500 strike, which holds 20.64 lakh contracts, and 19,000 strike, which has 18.81 lakh contracts.

Call writing was seen at 18,000 strike, which added 3.7 lakh contracts, followed by 17,900 strike which added 1.32 lakh contracts, and 18,800 strike which added 1.22 lakh contracts.

Call unwinding was seen at 18,600 strike, which shed 72,150 contracts, followed by 19,000 strike which shed 48,050 contracts, and 17,600 strike which shed 28,050 contracts.

PUT OPTION DATA

Maximum Put open interest of 31.64 lakh contracts was seen at 16,500 strike, which will act as a crucial support level in the September series.

This is followed by 17,500 strike, which holds 28.64 lakh contracts, and 17,000 strike, which has accumulated 27.55 lakh contracts.

Put writing was seen at 17,500 strike, which added 2.67 lakh contracts, followed by 18,000 strike, which added 2.54 lakh contracts, and 17,800 strike which added 1.51 lakh contracts.

Put unwinding was seen at 16,500 strike, which shed 96,700 contracts, followed by 18,200 strike which shed 69,850 contracts, and 18,100 strike, which shed 48,250 contracts.

STOCKS WITH A HIGH DELIVERY PERCENTAGE

A high delivery percentage suggests that investors are showing interest in these stocks. The highest delivery was seen in Alkem Laboratories, HCL Technologies, Mphasis, HDFC, and Dr Reddy’s Laboratories, among others.

37 stocks saw long build-up

An increase in open interest, along with an increase in price, mostly indicates a build-up of long positions. Based on the open interest future percentage, the top 10 stocks in which a long build-up was seen including ACC, Bharat Electronics, Honeywell Automation, RBL Bank, and Nifty Financial.

52 stocks saw long unwinding

A decline in open interest, along with a decrease in price, mostly indicates a long unwinding. Based on the open interest future percentage, here are the top 10 stocks including Trent, Polycab India, Godrej Consumer Products, Dixon Technologies, and Astral, in which long unwinding was seen.

64 stocks saw short build-up

An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions. Based on the open interest future percentage, the top 10 stocks in which a short build-up was seen including Infosys, L&T Technology Services, Tata Consumer Products, Coforge, and Tata Consultancy Services.

43 stocks witnessed short-covering

A decrease in open interest, along with an increase in price, mostly indicates a short-covering. Based on the open interest future percentage, the top 10 stocks in which short-covering was seen including PVR, Indiabulls Housing Finance, City Union Bank, Bajaj Finserv, and Ambuja Cements.

Bulk Deals

Sundram Fasteners: ICICI Prudential Mutual Fund acquired 13,77,726 equity shares or 0.6% stake in the company via open market transactions. These shares were bought at an average price of Rs 845 per share. However, promoter TVS Sundram Fasteners sold 24.7 lakh shares at an average price of Rs 845.09 per share.

(For more bulk deals, click here)

Investors Meetings on September 15

Cummins India: Officials of the company will interact with Haitong Securities India.

Endurance Technologies: Officials of the company will meet Amansa Capital Pte Ltd, Singapore.

Symphony: Officials of the company will interact with Abakkus Asset Manager LLP.

Indian Energy Exchange: Officials of the company will meet Cadence Partners.

Tata Chemicals: Officials of the company will interact with Nomura Asset Management.

Crompton Greaves Consumer Electricals: Officials of the company will meet Genesis Investment Management.

Greenply Industries, Gateway Distriparks, Ajanta Pharma: Officials of companies will attend Asian Markets Securities Pvt Ltd (AMSEC) Institutional Investor Conference.

Mallcom (India): Officials of the company will interact with Valorem Advisors.

Voltas: Officials of the company will meet Quaero Capital LLP.

Sun Pharma: Officials of the company will participate in CLSA Asia Investor’s Forum 2022.

Symphony: Officials of the company will meet ICICI Securities.

Mahindra & Mahindra Financial Services: Officials of the company will participate in Morgan Stanley’s investor conference.

Rallis India: Officials of the company will meet Arihant Capital Markets, and Nirmal Bang Securities.

ICICI Bank, Axis Bank, IDFC First Bank: Officials of banks will attend Goldman Sachs India Thematic Financials Tour.

Mishra Dhatu Nigam: Officials of the company will meet investors in non-deal roadshows in UAE

Hindustan Aeronautics: Officials of the company will meet investors in non-deal roadshows.

Vascon Engineers: Officials of the company will meet Sunidhi Securities & Finance, and interact with Vijay Sarda (HNI).

Tata Consumer Products: Officials of the company will meet Hill Fort India Fund LLP, and Kotak Securities.

Kalyan Jewellers India: Officials of the company will meet Alquity Fund.

Ashoka Buildcon: Officials of the company will meet Bajaj Allianz Life Insurance.

Gokaldas Exports: Officials of the company will meet ICICI Prudential Life Insurance.

Indian Hotels: Officials of the company will meet M&G Investments Management, Capital Research Global Investors, Norges Bank, UBS Asset Management, and Sephira Investment Advisors.

Stocks in News

Tamilnad Mercantile Bank: The bank will debut on the bourses on September 15. The final issue price has been fixed at Rs 525 per share.

Tata Steel: The steel company said the board of directors has approved the fund raising through the issue of non-convertible debentures up to Rs 2,000 crore in two series. In one series, they will raise Rs 500 crore and in second series, the fund raising via NCDs would be Rs 1,500 crore.

Balaji Amines: The company said the Phase 1 of 90-acre greenfield project (Unit IV) has been completed. The di-methyl carbonate, propylene carbonate, and propylene glycol plant will be ready to commence commercial production by the end of September 2022. In addition, it has also started construction in phase 2 of greenfield project (Unit IV) for 2 plants. The company already has environmental clearance for the said expansion.

KPI Green Energy: The company has received new order of 4.20 MW (comprising of 4.20 MW wind turbine and 3 MWdc solar) under wind-solar hybrid power project. The order is from Nouveau Jewellery LLP, Surat under ‘captive power producer (CPP)’ business segment.

G R Infraprojects: Promoters Laxmi Devi Agarwal, Suman Agarwal, Ritu Agarwal, Lalita Agarwal, Sangeeta Agarwal, Kiran Agarwal and Manish Gupta will be selling up to 57,04,652 equity shares or 5.9% stake in the company via offer for sale on September 15-16. In addition, they are also intended to sell additional 8,70,202 shares in an oversubscription option. The floor price has been fixed at Rs 1,260 per share.

HFCL: The company has received the advance purchase orders worth Rs 447.81 crore, consisting of Rs 341.26 crore from Bharat Sanchar Nigam (BSNL), and Rs 106.55 crore from RailTel Corporation of India.

Glaxosmithkline Pharmaceuticals: Life Insurance Corporation of India has offloaded 34.63 lakh equity shares or 2.04% stake in the company via open market transactions. With this, LIC’s shareholding in the company reduced to 4.35%, down from 6.4% earlier.

Fund Flow

FII and DII data

Foreign institutional investors (FIIs) have net sold shares worth Rs 1,397.51 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 187.58 crore on September 14, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Three stocks – Indiabulls Housing Finance, RBL Bank, and Delta Corp – are under the NSE F&O ban list for September 15. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.